Caution on biotechs and energy
Biotech stocks were unusually weak today with many mid-caps down 3-4%. High flier CBST was down even more due to an Oppenheimer downgrade. The ELN lawsuit against Biogen regarding the Tysabri deal with JNJ didn't help matters. More analysis to follow as this is a travel day. Energy stocks were...
Weak dollar boosts Reflation Trade
Ten Month Low on the Dollar The US Dollar Index Future (DXY) gapped down 1.3% today at 78.27 approaching September 2008 lows. This dollar drop immediately brought money into gold up nearly 2% to the 950+ level. Gold is the pure play on the dollar. Gold and silver stocks also rallied with...
Medarex acquisition ignites broad biotech rally
Bristol Myers announced Thursday that they will buy Medarex (MEDX) for $16/share or $2.1B a 90% premium over yesterdays' market price of $8.40. Medarex is one of the leading biotech companies focused in human antibody development for use in a broad range of therapeutic areas such as cancer,...
Rally Update:Energy and metals lead the way
As of this writing two hours before the Friday close crude was above $63 up 3%. Since this rally began last week energy stocks have moved up in lockstep. Better than expected housing starts today have boosted the energy complex with volatile nat gas stocks such as KWK and SWN the biggest...
Broad market move up 2%+; Reflation trade back
The reflation trade caught some bids today with energy, precious metal, real estate, agricultural and industrial stocks all following the lead of the financials.Many of the energy stocks are near their intermediate lows so this could be a good entry point for the longer term.As examples COP,...